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April 3, 2022
Question

How do i have turbotax review my 2021 federal return to see if i did everything correctly?

  • April 3, 2022
  • 1 reply
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i feel like i did something wrong for this year's taxes because i suddenly owe when i never have before.

1 reply

April 3, 2022

 

If your refund is lower than expected this year, you’re not alone. A lot of people experienced financial hardships in 2021 that could have an impact on their refund. But don’t worry, TurboTax looks for every possible deduction and credit to maximize your refund.

The situations below are some of the most common reasons why you might be getting less money than you expected. For example, did you:

  • Receive advance Child Tax Credit payments
  • Adjust your withholding to maximize your take home pay
  • Receive unemployment benefits, but didn’t have taxes withheld
  • Earn little or no income, and didn’t qualify for the Earned Income Credit (unfortunately, unemployment doesn't count as earned income)
  • Complete a W-4, which more closely matches your tax liability
  • Sell stock
  • Take an early withdrawal from your retirement account
  • Pay less tuition due to school closures, so you can’t deduct as much
  • Claim the Recovery Rebate Credit, but overestimated the amount or didn't qualify

To maximize your refund next year, invest, and/or pay taxes you might owe, consider some of these options:

  • Amend your W-4 to increase the amount of withholdings for a higher refund next year; or
  • Instead of withholding more, put that same amount into a savings account, an IRA, or other tax-sheltered vehicle 
  • If you can’t pay taxes you owe for unemployment benefits in full, the IRS offers alternate payment options. If you’ve already filed, you can complete an Online Payment Agreement application or request a payment plan by phone at 800-829-1040
  • If your refund is wildly off, double check the amounts you input (a dollar amount mistype can have a big impact on your refund)

Here are some other possible reasons for a year-over-year refund decrease:

Changes in your income or tax rate

State and local income tax deduction changes

Losing certain credits or deductions

Other income types

 

 

 

 

 

 

 

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